1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olga55 [171]
3 years ago
8

Bovine Company, a wholesale distributor of DVDs, has been experiencing losses for some time, as shown by its most recent monthly

contribution format income statement below:
Sales $1,500,000 Variable expenses 588,000 Contribution margin 912,000 Fixed expenses 945,000 Net operating loss $ (33,000)
In an effort to isolate the problem, the president has asked for an income statement segmented by geographic market. Accordingly, the Accounting Department has developed the following data:
Geographic Market South Central North Sales $400,000 $600,000 $500,000 Variable expenses as a percentage of sales 52% 30% 40% Traceable fixed expenses $240,000 $330,000 $200,000
Required: i. Prepare a contribution format income statement segmented by geographic market, as desired by the president. ii. The company’s sales manager believes that sales in the Central geographic market could be increased by 15% if monthly advertising were increased by $25,000. Would you recommend the increased advertising? Show computations to support your answer.
Business
1 answer:
german3 years ago
3 0

Solution :

Particulars                   \text{Total company}          \text{South  }           \text{Central}          \text{North}

Sales                           $1,500,000              $400,000      $600,000     $500,000

Variable expenses        588,000                208000       180000     200000

Contribution margin      912000                  192000        420000    300000

Traceable fixed          770,000                    240,000      330,000    200,000

expenses          

Geographic market      142,000          -$48000              $90000       $100000

segment expenses

Common fixed

expenses not traceable

to geographic markets

Net operating income

You might be interested in
Your boss at swift electronics is getting ready to enter into a series of contracts with new group of suppliers. she is concerne
solong [7]
To make sure everything's up to date
5 0
3 years ago
Bought goods<br> for<br> cash $100<br> to double<br> entry system.
aalyn [17]
Purchases account is going to increase on the credit side and the cash account is going to decrease ( to be written on the credit side).
3 0
3 years ago
Natural rate. the natural rate of unemployment in europe is normally twice and at times three times that of the usa. can you exp
Stels [109]

The unemployment charge is the critical indicator which could degree the price of unemployed humans inside the overall labor pressure of the economy.

The unemployment rate would bring about the quantity of people unemployed inside the economy. The unemployment would also have a change off with inflation and is known as philips curve. The unemployment could bring about the fraction of people unemployed inside the economy.

The natural fee of unemployment would be the unemployment level at the whole employment degree in the financial system. The natural fee of unemployment would result in the sum of frictional and the structural unemployment within the economic system.

The increase in the frictional unemployment would result in the increase inside the herbal rate of unemployment as humans might also shift to higher research leaving job or can be unemployed in the transition whilst moving from one process to any other. thus, growth inside the frictional unemployment might bring about the growth in the unemployment within the economic system thereby growing herbal price of unemployment.

Learn more about unemployment here :- brainly.com/question/305041

#SPJ4

7 0
1 year ago
transferable skills necessary for successful employment include a:basic skills b:thinking skills c:personal quality d: all of th
Ymorist [56]

The correct answer is D. All of the above

Explanation:

Skills that can be used in multiple jobs or contexts are known as transferable skills. This category of skill covers many types of skills including basic skills such as teamwork, communication or problem-solving; personal quality skills such as honesty, empathy, or ethics; and thinking skills such as making decisions or organizing information. Moreover, these are all transferable skills because it is likely an individual requires these skills despite his profession or role. For example, both a doctor and a secretary might face challenges that require them to make decisions (thinking skill), use ethics to make the best decision (personal quality), and communicate this decision to others (basic skill.)

5 0
3 years ago
You are a financial advisor helping a young family create a college fund to provide for their daughter Mary’s education. Mary ju
stiv31 [10]

Answer:

a. Tuition and housing costs today = $65,000 per year

Inflation rate = 4%

Tuition and housing costs in 13 years = 65,000 * (1 + 0.04)^13

Tuition and housing costs in 13 years = $108,229.78

b. Amount to be in the savings account can be calculated using the present value of a growing annuity due formula

After tax rate of return = 10 * (1 - 0.3) = 7%, Growth rate = 4%, Number of year = 4

PV = P x (1 + r) * [1 - (1 + g)^n * (1 + r)^-n] / (r - g)

PV = 108,229.78 * (1 + 0.07) * [1 - (1 + 0.04)^4 * (1 + 0.07)^-4] / (0.07 - 0.04)

PV = $415,050.16

c. Amount of the first payment can be calculated using FV of a growing annuity

FV = $415,050.16, Number of years = 13, Growth rate = 2%, Rate of return = 10%

FV = P * [(1 + r)^n - (1 + g)^n] / (r - g)

415,050.16 = P * [(1 + 0.07)^13 - (1 + 0.02)^13] / (0.07 - 0.02)

P = $18,591.47

d. If the investments are tax free, the rate of return = 10%

Amount to be in the savings account = PV = P * (1 + r) * [1 - (1 + g)^n * (1 + r)^-n] / (r - g)

= 108,229.78 * (1 + 0.1) * [1 - (1 + 0.04)^4 * (1 + 0.1)^-4] / (0.1 - 0.04)

= $398,768.92

FV = P * [(1 + r)^n - (1 + g)^n] / (r - g)

398,768.92 = P * [(1 + 0.1)^13 - (1 + 0.02)^13] / (0.1 - 0.02)

P = $14,778.36

7 0
2 years ago
Other questions:
  • You are waiting in the lobby of the office of your dream job. you brought along your resume, and a portfolio of work to demonstr
    15·1 answer
  • A P30,000, 10% bond with quarterly coupons is redeemed at 98% at the end of 15 years. Find the redemption value. (Note: Don't us
    13·1 answer
  • A country is attempting to measure its growth rate in technology. This is: possible to estimate using the growth accounting equa
    5·1 answer
  • On December 15, 2021, Rigsby Sales Co. sold a tract of land that cost $3,300,000 four $5,000,000. Rigsby appropriately uses the
    5·1 answer
  • A manufacturer produces 500,000 MP3 players in the first quarter of the year. It sells 400,000 of them and adds 100,000 of them
    5·1 answer
  • After hearing a knock at your front door, you are surprised to see the Prize Patrol from your state’s online lottery agency. Upo
    9·1 answer
  • If, over a given period, the index of export prices rises by 10% and the index of import prices rises by 5%, the terms of trade
    12·1 answer
  • What are renewable energy sources?
    15·2 answers
  • How do i know im not gay
    9·2 answers
  • Which two actions will help you get the most benefit from an informational interview
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!